The State and Future of the Australian Islamic Economy
The State and Future of the Australian Islamic Economy, produced by Salaam and DinarStandard with Salaam Gateway as media partner, is the first comprehensive assessment of Australia's Islamic economy. Launched in Sydney on 3 August 2026, the report examines six real economy sectors (halal food, pharmaceuticals, cosmetics, modest fashion, Muslim-friendly travel, and media & recreation) alongside Islamic finance. It also outlines what it will take for Australia to compete for a larger share of the global opportunity.
Overview
Australia's Islamic economy has moved past the question of whether it exists. Muslim consumer spending across the six real economy sectors is projected to grow from AUD5.9 billion in 2020 to AUD9.8 billion by 2028. That growth is supported by a Muslim population of more than one million and rising mainstream demand for products associated with quality, traceability and ethical sourcing.
Australia is already a significant force in global halal trade, ranking as the world's 12th largest halal exporter. But that strength rests on a narrow base: food makes up 97% of export value. The report argues that Australia can diversify well beyond food because of its regulatory credibility, its manufacturing reputation and its proximity to trading partners across Southeast Asia and the Middle East. The next opportunities lie in health, beauty, fashion, travel, content and capital.
Demand is not the constraint. The report finds that Australia's next phase of growth will be decided by regulatory clarity, consistent certification and coordinated action across government, industry and investors.
Key Findings
Muslim consumer spending across Australia's six real economy sectors is projected to reach AUD9.8 billion by 2028, up from AUD5.9 billion in 2020.
Australia exports AUD15.9 billion in halal goods, making it the 12th largest halal exporter globally, with food accounting for 97% of export value.
Wheat (AUD3.0 billion), sheep and goat meat (AUD1.64 billion) and dried legumes (AUD1.49 billion) lead Australia's halal export categories.
Australia ranks among the world's top three halal meat exporters alongside Brazil and India, with AUD12.1 billion in halal food exports to Muslim-majority markets.
Australia's halal pharmaceuticals, cosmetics and modest fashion sectors have each outpaced the global growth average since 2020.
On the import side, fashion (AUD2.4 billion) and food (AUD1.9 billion) lead, sourced mainly from Bangladesh, Indonesia and Malaysia.
Islamic finance remains small at around AUD1 billion in assets. It is held back by regulatory complexity and structural barriers such as double stamp duty in some asset-backed structures .
Sector-Specific Data
Muslim-Friendly Travel: The fastest-growing sector, up 467% between 2020 and 2028. Muslim visitor spending is projected to reach AUD1.7 billion by 2028.
Halal Cosmetics: Growth of 100% over 2020–2028, with Australia increasingly used as a production base for halal health and beauty goods.
Halal Pharmaceuticals: Growth of 75% over 2020–2028. Brands such as Blackmores have secured certifications including approval from Malaysia's JAKIM, opening access to Southeast Asian markets.
Modest Fashion: Growth of 57% over 2020–2028. Brands like Asiyam and Hijab House have scaled from local stores to global labels, and Australia is positioned as a potential Southern Hemisphere design hub.
Halal Food: Australia's most established halal strength, built on a reputation for safe, high-quality and well-traced production.
Media & Recreation: Australian Muslim creators, including OnePath Network and Zaki & Friends, are showing that locally produced content can reach global audiences.
Islamic Finance: Around AUD1 billion in assets today. It is small in scale but strategically important, with strong alignment to ESG and ethical investment.
A Roadmap for Coordinated Growth
The report calls for a shift from passive neutrality to active, industry-wide coordination, and sets out a way forward for four stakeholder groups:
Government: Establish a single national halal certification framework, create a dedicated Halal Economy Growth Facility, and remove structural barriers in Islamic finance regulation.
Industry: Form sector-specific halal export groups, develop financing suited to growing firms, and deepen engagement with regulators.
Finance & Investors: Move beyond basic Shariah screening, direct capital into real businesses and assets, and use industry forums to build market understanding.
Community: Back women and young founders, expand training and university pathways, and raise the profile of local success stories.
Produced by Salaam and DinarStandard, with Salaam Gateway as media partner, The State and Future of the Australian Islamic Economy provides insights into market size, export performance, sector growth and policy priorities shaping the future of Australia's Islamic economy.
